Partnerships are one of the most commonly used business structures in India. The formation of a partnership business is much easier, and the compliance burden is much lower than that of a company.
Obtaining a partnership deed registration certificate and registering a partnership business is as easy as following these steps:
STEP 1: Select a business name
You must choose a unique name for your partnership company that does not match the name of any other business entity. You can find out more about this by visiting the MCA’s website (Ministry of Corporate Affairs).
If you enter your chosen business name into the space provided, you can check if it has already been taken by someone else. The site can also tell you whether a name is registered as a trademark or domain name.
STEP 2: Developing a partnership agreement
It is unique to every partnership business to have a partnership deed. When drafting the partnership deed, you should always consult with a legal expert.
* Business name, address, and partners’ names
* Amounts contributed by each partner
* Amounts payable to partners as commissions or salaries
* Involved in the partnership are their rights, duties, and obligations.
* In case a partner dies or retires, the following process needs to be followed
* When a business dissolves, what processes must be followed
* Other clauses agreed to by the partners
STEP 3: Agreement of partnership execution
After the original partnership deed format has been finalized, it must be executed (signed by all partners). Deeds must also be signed by two witnesses, and their addresses must be provided.
A stamp duty payment should then be made in accordance with the state’s requirements.
Buying stamp paper is equivalent to paying stamp duty through banking channels. Payment must be made before the deed can be notarized.
STEP 4: Documents need to be prepared
Before registering, you should have the following documents ready:
* An application for online registration of the partnership business (Form 1)
* The partnership deed certified as true and accurate
* The duly completed affidavit specimen
* PAN cards of each partner (for identification)
* To prove address, partners must have their Aadhaar cards, voter ID cards, passports, driving licenses
* PAN cards for organizations
* If the registered office space is rented, the rent agreement and utility bill must be provided. The landlord’s NoC is also required for rental premises.
* The GST registration certificate for the business is attached
* Detailed information about the business’ current bank account
STEP 5: Creating the Partnership Company
Government of Tamil Nadu’s Registrar of Firms (RoF) oversees Chennai’s registration process. You should submit an application to this authority along with the documents listed above. Signing the application form is a requirement for each partner. A business registration in Chennai also requires the payment of a fee.
STEP 6: Approval and Certificate of Business Registration
A Registrar reviews your application and accompanying documents after you have submitted your application and paid the requisite fee. A business’s registration will be approved once the authority is satisfied. Once the registration certificate has been issued, it will be emailed to the company’s official email address. As a registered partnership firm, your firm will also receive all the benefits that come with registration.
It is optional to register a partnership business under the Indian Partnership Act, 1932. Registration of a firm is at the discretion of the partners. There are several benefits that a registered company enjoys over an unregistered company.